Overview
This proposal seeks community approval to allocate 50% of all protocol fees generated from tETH MEY toward recurring open-market purchases of TREE, the native governance token of the Treehouse ecosystem.
The objective is to strengthen alignment between protocol adoption and long-term tokenholder value by accumulating TREE in the DAO treasury.
If approved, all repurchased tokens will be held as DAO reserves, reducing effective circulating supply and reinforcing the protocol’s self-sustaining growth model.
Token Details:
- Token: Treehouse (TREE)
- Network: Ethereum (ERC-20)
- Address: 0x77146784315ba81904d654466968e3a7c196d1f3
- Etherscan: Treehouse (TREE) | ERC-20 | Address: 0x77146784...7c196d1f3 | Etherscan
Motivation
As Treehouse continues to expand its ecosystem of tAssets and Decentralized Offered Rates (DOR), protocol revenue from Market Efficiency Yield (MEY) fees has become a recurring and scalable source of income.
Currently, the protocol charges a 20% fee on MEY generated across all tAssets, providing a sustainable revenue stream that grows proportionally with adoption.
Implementing a buyback mechanism allows the DAO to:
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Strengthen the intrinsic link between protocol success and tokenholder value.
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Establish a deflationary mechanism that reduces circulating supply over time.
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Build a strategic reserve of TREE tokens that can later be deployed for ecosystem growth or incentive programs, subject to governance approval.
Buyback Program Design
If approved by governance, 50% of protocol fees generated by tETH MEY revenue will be directed to buybacks.
Program Details:
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Allocation Ratio: 50% of protocol fees generated by tETH MEY revenue.
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Mechanism: Onchain open market purchases on the Ethereum network.
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Execution Frequency: Buybacks will be conducted at irregular intervals to minimize the risk of front-running, with a minimum cadence of once per week.
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Token Destination: Repurchased tokens will be held in the Buyback wallet as DAO reserves and may be deployed as future incentives, subject to governance approval
This program is designed to remain flexible, with the DAO retaining the ability to revisit and adjust these parameters to adapt to evolving market and protocol conditions.
Transparency Commitments
To ensure accountability and maintain transparency, the DAO commits to:
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Publish on-chain tracking of buyback allocations and execution wallets.
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Provide periodic reports detailing program performance.
Next Steps
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Gather community feedback on the proposal.
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Submit the finalized proposal for a formal DAO vote on Snapshot.
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Upon approval, initiate the buyback program as outlined above.